In a large mixing bowl, beat the softened cream cheese until smooth. Gradually add the powdered sugar, one cup at a time, mixing until a thick dough forms. Stir in the peppermint extract and continue mixing until fully incorporated.

Divide the dough into portions if you want multiple colors. Add a few drops of food coloring to each and knead by hand or mix until the color is even. You can create classic red and green or experiment with soft pastels.

Pinch off small portions of dough and roll them into balls. If desired, roll each ball in granulated sugar to prevent sticking and add sparkle. You can also flatten them slightly with a fork for a traditional look.

Place the mints on a parchment-lined tray and refrigerate for at least 1 hour or until firm. Store in an airtight container in the fridge until ready to serve.